Aspects  of  the  Author. 


iDERATE  HOUSES  FOR  MODERATE  MEANS, 


ARGUMENT 


Cheap    Trains   as  Essential  to  Independent 
Homes  for  the  Working  Classes ; 

AND     AN 

ADDRESS 

BEFORE  THE   QUINCY    HOMESTEAD   ASSOCIATION: 


TOGETHKK    WITH 


THE  ORGANIZATION   OF  THE  QUINC^  HOMESTEAD  ASSOCIATION. 
AND  THE  REQUIREMENTS  FOR  ADMISSION. 


BY   JOSIAH   QUINCY. 


BOSTON  : 

WRIGHT    &    POTTER,    PRINTERS,    79    MILK    STREET, 
(CORNER  OF  FKDKRAL  STRKKT). 

1871. 


UCSB  LIBRARY 

' 


MODERATE  HOUSES  FOR  MODERATE  MEANS. 


AN 


ARGUMENT 

FOR 

Cheap   Trains  as  Essential  to  Independent 
Homes  for  the  Working  Classes ; 


ADDRESS 

BEFORE  THE  QUINCY  HOMESTEAD  ASSOCIATION: 


TOGETHER  WITH 


THE  ORGANIZATION  OF  THE  QUINCY  HOMESTEAD  ASSOCIATION, 
AND  THE  REQUIREMENTS  FOR  ADMISSION. 


BY  JOSIAH  QUINCY.X 


^BOSTON : 

WRIGHT    &    POTTER,    PRINTERS,    T9    MILK    STREET 
(CORNER  OF  FEDERAL,  STREET). 


THE   QUINCY   HOMESTEAD  ASSOCIATION. 


PREAMBLE  AND  RESOLUTIONS. 


Whereas,  The  Hon.  JOSIAH  QUINCY  has  been  and  is  making  efforts  to  as- 
sist the  working  men,  of  moderate  means,  in  obtaining  homes  outside  the 
limits  of  the  city  of  Boston ;  and 

Whereas,  There  are  certain  measures  before  the  State  legislature,  look- 
ing to  the  reduction  of  railroad  fares  for  the  benefit  of  the  working  classes ; 
and 

Whereas,  The  above-mentioned  efforts,  plans  and  measures  seem  feasible 
to  us,  and  worthy  of  our  attention,  as  being  destined  to  meet  with  ultimate 
success;  therefore 

Resolved,  That  we  unite  together,  under  the  name  and  style  of  "THE 
QUIXCY  HOMESTEAD  ASSOCIATION,"  for  the  purpose  of  procuring  homes 
for  ourselves,  on  the  plan  proposed  by  Mr.  Quincy,  to  wit :  a  small  amount 
to  be  paid  down,  say  at  least  two  hundred  dollars  (8200),  and  the  balance 
in  monthly  instalments,  until,  interest  being  computed,  the  whole  amount 
shall  have  been  paid,  when  a  clear  title  to  the  property  will  be  given. 

Resolved,  That  all  we  do  shall  be  on  the  cooperative  plan,  by  which  we 
are  jointly  responsible  for  the  regular  payment  of  monthly  rent,  paying 
like  amounts  down,  like  monthly  instalments ;  houses  to  be  after  the  same 
general  plan  and  value,  except  that  any  individual  member  may  add  to  the 
value  of  his  or  her  house  by  paying  actual  cash  for  the  said  additional 
value. 

Resolved,  That  all  applications  for  membership  shall  be  upon  a  prescribed 
printed  form ;  that  all  applications  may  be  received  at  a  regular  or  special 
meeting  of  the  Association ;  that  all  applications  shall  be  referred  to  a  reg- 
ular or  special  committee  of  investigation,  who  shall  report  at  next  meet- 
ing, if  possible,  at  which  time  each  application  shall  be  subject  to  a  secret 
ballot,  and  one  negative  vote  shall  bar  the  applicant  from  admission. 

Resolved,  Any  member  absenting  himself  from  three  regular  meetings,  in 
succession,  shall  be  considered  as  having  withdrawn,  unless  he  notifies  the 
Secretary  of  his  inability  to  attend. 

Resolved,  That  the  business  affairs  of  the  Association  shall  be  kept 
strictly  secret. 

Resolved,  That  it  shall  require  a  two-thirds  vote  to  alter,  amend  or  add  to 
these  resolutions. 


CHEAP   TRAINS  AND   INDEPENDENT  HOMES 
FOR  THE   WORKING  PEOPLE. 


ARGUMENT 

BEFORE  THE  MASSACHUSETTS  LEGISLATIVE  COMMITTEE  ON  KAIL  WAYS,  1871. 


MR.  CHAIRMAN  : — In  the  petition  I  have  presented,  and  which 
you  have  done  me  the  honor  to  print  among  the  documents  of 
the  session,  I  pray  the  honorable  bodies  of  which  you  are  the 
organs  to  take  into  consideration  "  the  justice,  legality  and  ex- 
pediency "  of  requiring  the  managers  of  the  railways  terminat- 
ing in  the  city  of  Boston  to  carry  mechanics,  artisans  and  la- 
borers, who  have  been  driven,  either  directly  or  indirectly,  from 
their  homes,  by  the  requirements  of  railroads,  for  a  very  reduced 
price.  And  first  let  me  speak  of  the  JUSTICE  of  the  claim. 

As  I  have  stated  in  my  petition,  hundreds  of  families  and 
thousands  of  individuals  of  the  working  classes,  have  been 
thus  driven  from  their  homes  and  forced  to  go  into  poorer, 
more  expensive  or  more  inconvenient  lodgings.  This  is  done 
by  the  grants  made  by  your  predecessors  permitting  these  cor- 
porations to  avail  themselves  of  the  power  of  the  State  in  tak- 
ing lands  by  eminent  domain.  This  power  is  rarely,  if  ever, 
delegated,  I  will  not  say  prostituted,  in  Europe,  for  the  benefit 
of  money-making  corporations.  Let  me  read  you  an  extract 
from  the  London  Times  of  the  24th  of  August,  1864 :  "  From 
the  city  of  London  the  working  class  are  being  fast  driven  away 
in  the  rage  for  railway  enterprise  and  public  improvement,  no 
one  knows  where,  but  probably  to  crowd  still  more  districts 
already  densely  populated.  The  value  of  ground  in  the  city 
has  increased  to  a  fabulous  extent ;  a  building  has  been  erected 


on  land  bought  for  the  purpose,  at  the  enormous  rate  of  1,800,- 
000  pounds  sterling  (or  over  nine  millions  of  dollars),  the 
statute  acre."  Should  a  money-making  corporation  have  asked 
Parliament,  in  such  a  case,  to  grant  them  the  use  of  "  eminent 
domain,"  their  petition  would  have  been  treated  with  contempt. 
Let  us  look  at  the  action  of  our  own  legislatures.  I  speak 
not  of  the  power  that  has  been  used. 

By  Act  of  1869,  c.  291,  the  Boston  and  Lowell  Railroad  were 
authorized  to  take,  and  during  the  present  summer  will  take, 
a  block  of  land  near  their  depot.  There  are  two  hundred 
houses,  most  of  them  occupied  by  several  families,  averaging 
at  least  ten  tenants  to  a  house.  If,  Mr.  Chairman,  the  title  of 
that  bill  had  been  "  An  Act  entitled  an  Act  to  turn  two  thousand 
poor  tenants,  without  compensation,  into  the  street,  for  the 
benefit  of  the  Boston  and  Lowell  Railroad,"  it  would  not  have 
passed  without  some  such  provision  for  their  benefit  as  I  now 
ask. 

Again,  by  Act  of  the  same  year  (1869,  c.  461),  the  Boston  and 
Albany  Railroad  are  authorized,  for  depot  and  other  purposes, 
"  in  any  town  or  city,  to  purchase  or  take  such  lands  and  flats 
as  and  wherever  they  may  deem  expedient."  Eminent  do- 
main is  given  without  limit  to  an  irresponsible  corporation, 
with  no  provision  for  the  rights  of  the  tenants  they  have  or 
may  hereafter  deprive  of  their  homes. 

Nor  is  this  all.  The  last  legislature  appointed  a  joint  com- 
mission, consisting  of  the  Harbor  and  Railway  Commissioners, 
to  report  a  comprehensive  plan  for  depots  of  the  four  railroads 
terminating  on  the  northern  side  of  the  city.  Several  plans 
have  been  suggested,  one  of  which  at  least  will  be  laid  before 
you  at  your  present  session.  Every  one  of  them  contemplates 
taking  houses  that  will  turn  hundreds  of  families  out  of  their 
homes. 

I  do  not  mean  to  discuss  the  policy  of  the  State  in  granting 
this  power.  But  I  maintain  that  justice  demands  at  the  hands 
of  her  representatives  that,  while  they  provide  that  the  rich 
owners  of  the  land  shall  be  paid  in  full,  they  are  bound  to  pro- 
tect the  interests  of  the  poor  tenants  they  turn  into  the  street. 
Permit  me  to  read  an  extract  or  two,  as  showing  the  difference 
between  a  monarchy  and  a  republic  in  guardianship  of  this 
class : — 


"In  the  House  of  Lords,  on  Friday,  the  22d  of  April,  1864,  the 
following  sessional  order  was  proposed  by  the  Earl  of  Derby,  and 
unanimously  adopted,  viz.:  That  it  be  an  instruction  to  the  commit- 
tee, providing  for  any  railway  constructing  in  the  metropolis,  to 
require  such  railway  company  to  run  a  cheap  train  morning  and 
evening,  the  fare  not  to  exceed  one  penny  for  the  whole  journey." 

His  Lordship  also  remarked  that  this  rule  applied  already  to 
the  North  London  Railway,  which  may  be  seen  on  reference  to 
their  Act,  24  and  25  Victoria,  c.  196,  sect.  45.  He  further 
stated  that  the  London,  Chatham  and  Dover  line  voluntarily 
adopted  the  principle  on  his  motion,  by  agreeing  to  run  trains 
morning  and  evening,  a  distance  of  ten  miles,  for  one  shilling  a 
week.  In  justice  to  the  railway  companies  required  to  furnish 
this  accommodation,  it  is  provided  that  the  number  of  workmen 
claiming  this  privilege  shall  not  be  less  than  one  hundred. 

Again,  in  the  Illustrated  News  of  Jan.  4,  1862,  it  is  stated 
that  on  occasion  of  debate  in  the  House  of  Lords  on  the  llth 
of  March,  1861,  Lord  Ebury  informed  their  Lordships  that  an 
arrangement  had  been  made  that  day  with  three  of  the  princi- 
pal railway  companies,  by  which  they  consented  to  convey  not 
less  than  1,000  passengers  a  day  from  any  place  within  ten  miles 
of  London,  and  back,  for  twopence  a  day,  thus  offering  a  great 
inducement  for  the  formation  of  suburban  villages  on  a  large 
scale. 

It  is  remarkable,  and  not  very  creditable  to  our  republican 
institutions,  that  the  proudest  peer  in  England,  and  her  aristoc- 
racy by  an  unanimous  vote,  should  thus  care  for  the  laboring 
classes,  and  that  after  an  experience  of  more  than  thirty  years, 
during  which  men  of  all  parties  have  predominated,  I  should 
be  the  first  to  call  the  attention  of  the  legislature  to  wrongs 
done  to  this  most  important  class  in  the  community,  driven 
from  their  homes  by  legislative  action. 

As  to  the  power  of  the  legislature  I  have  no  doubt.  The 
decision  of  the  Supreme  Court  in  the  case  of  petitioners 
against  the  Eastern  Railroad  establishes,  as  I  understand,  their 
right,  under  the  reserved  right  to  alter,  amend  and  repeal  char- 
ters, the  power  to  do  whatever  they  may  deem  that  the  interests 
of  the  public  require  at  the  expense  of  the  corporations.  But 
I  trust  that  no  peremptory  action  will  be  necessary.  From 


what  I  know  of  the  managers  and  stockholders  of  the  railroads 
I  can  have  no  doubt  that  they  will  be  ready  to  do  whatever 
they  fairly  can  for  the  benefit  of  these  classes,  that  does  not 
establish  a  precedent  or  interference  with  their  pecuniary  inter- 
ests. And  there  can  be  no  doubt  that  if  villages  are  hereby 
established  on  their  lines,  the  friends  and  families  of  these  ten- 
ants who  will  pay  the  regular  fares  will  more  than  compensate 
for  any  additional  expense,  and  that  any  abuses  of  their 
liberality  can  be  prevented  by  their  own  or  the  action  of  the 
legislature. 

My  next  request  is  that  you  consider  the  expediency  of  aid- 
ing the  working  classes  to  obtain  homes  in  the  country.  Read 
the  exhaustive  report  of  the  Bureau  of  the  Statistics  of  Labor, 
and  learn  how  thousands  of  the  poorer  classes  dwell  in  this 
city.  The  greater  part  of  their  moral  degradation  arises  from 
the  utter  impossibility  of  observing,  in  their  miserable  dwell- 
ings, the  common  decencies  of  life.  Damp,  dark,  ill-ventilated 
houses  are  the  prolific  source  of  a  large  class  of  the  diseases 
that  enervate  or  destroy  the  health  and  strength  of  a  class  to 
whom  these  blessings  are  the  conditions  of  their  daily  bread. 
If,  Mr.  Chairman,  you  wish,  as  I  know  you  do,  to  see  the  labor- 
ing population  healthy,  sober,  self-supporting,  honest,  chaste, 
religious,  you  must  enable  them  to  acquire  homes,  where  health 
is  not  an  exception,  where  decency  is  not  an  impossibility, 
where  squalor  and  .discomfort  do  not  necessarily  drive  the  hus- 
band and  the  father  to  the  rum-shop. 

I  would  that  time  permitted  me  to  describe  the  exertions  that 
have  been  made  and  the  results  that  have  been  produced  in 
other  countries — at  Mulhouse,  at  Penze,  at  Ackroydon,  and 
elsewhere.  I  will  quote  but  a  single  case:  The  Metropolitan 
Association  for  improving  the  dwellings  of  the  industrial  classes 
in  London  erected  ninety  cottages  at  Penze.  A  visitor  says : — 

"A  more  gratifying  spectacle  could  hardly  be  offered  to  the 
friends  of  cottage  improvement  than  this  suburban  village.  An  air 
of  comfort  and  happiness  pervades  the  whole  group.  The  gardens 
that  surround  the  dwellings  are  well  planted,  and  the  evident  care 
bestowed  upon  their  cultivation  is  a  sure  sign  that  the  workmen 
themselves  spend  their  evenings  at  home,  instead  of  at  the  public- 
house.  Besides  these  pleasant  tokens  of  good,  the  visitor  cannot 
help  remarking  the  clean,  healthy  and  happy  appearance  of  the 


wives  and  chilch-en,  so  different  from  the  squalid  wretchedness 
which  is  inseparable  from  the  dark  alleys  and  fetid  courts  of  a 
crowded  town." 

I  cannot  but  hope,  Mr.  Chairman,  that  this  petition  may  re- 
sult in  great  benefits  to  the  laboring  classes.  I  have  explained 
to  several  assemblies  of  working  men  a  plan  for  enabling  them, 
by  depositing  the  difference  between  the  high  rents  they  now 
pay,  and  the  interest  on  the  value  of  their  houses,  in  a  savings 
bank,  to  procure  a  home  at  once,  and  in  a  few  years  to  become 
its  owner.  I  am  happy  to  say  that  the  plan  has  been  deemed 
feasible,  and  met  the  approbation  of  the  most  intelligent  among 
them,  and  associations  are  already  formed  into  which  the  grant- 
ing of  this  petition  will  breathe  the  breath  of  life,  As  a  part 
of  my  argument  I  shall  take  the  liberty  of  briefly  stating  the 
object  and  the  mode  of  effecting  it. 

The  success  of  the  plan  depends  on  two  modes  of  action, 
which  have  long  been  acknowledged  feasible,  but  which,  as  far 
as  I  am  aware,  have  never  been  brought  to  bear  on  each  other, 
or  never  been  combined. 

John  Bright,  Edward  Ackroyd,  Esq.,  in  England,  and  Mr. 
Dollfus  in  France,  undertook  to  solve  the  problem,  "How  a 
limited  outlay  of  capital  may  materially  assist  in  raising  the 
general  standard  of  workmen's  houses,  in  any  locality,  to  an 
extent  far  beyond  the  original  capita]  employed."  They  pro- 
cured land  —  obtained  designs  from  an  able  architect  —  found 
parties  willing  to  take  the  houses  —  formed  a  building  associa- 
tion, and  arranged  with  a  savings  bank,  who  agreed  to  advance 
three-fourths  of  the  capital  required,  the  principal  to  be  repaid 
with  animal  interest  in  twelve  yearly  instalments.  Where  the 
purchaser  was  of  good  character  but  unable  to  advance  the 
one-fourth  of  the  purchase  money,  Mr.  Ackroyd  guaranteed  the 
first  three  years'  payments,  after  which  his  guarantee  ceased,  as 
the  mortgage  of  the  property  was  a  sufficient  security  against 
loss. 

All  these  men  were  manufacturers,  and  did  what  they  did  for 
the  benefit  of  their  operatives.  We  cannot  expect  a  similar 
liberality  from  those  who  have  not  the  same  interests. 

1  hold  in  my  hand  a  translation  of  the  German  law  estab- 
lishing the  People's  Banks,  signed  by  the  present  Emperor  of 


8 

Germany,  and  the  greatest  living  statesman,  Graf  von  Bismarck- 
Schonhausen.  These  People's  or  cooperative  banks  of  Ger- 
many were  established  about  twenty  years  ago,  and  there  were 
in  that  country,  in  1867,  2,600  of  them,  with  550,000  share- 
holders. Money  and  goods,  in  1867,  were  entrusted  to  them 
on  credit,  amounting  to  36,000,000  of  dollars,  and  their  busi- 
ness transactions  amounted  that  year  to  155,000,000.  I  have 
not  time  to  explain  to  you  fully  the  immense  advantages  that 
resulted  from  these  associations,  in  enabling  men,  whose  only 
basis  of  credit  was  their  daily  labor,  to  obtain  small  sums  of 
money,  either  for  trade  or  housekeeping,  which  they  could  not 
command  at  all,  or  only  under  hard  conditions,  from  any  other 
source.  They  enabled  independent  craftsmen  to  purchase  at 
wholesale,  for  cost,  the  materials  used  in  their  manufacture ; 
they  enabled  associated  workmen  to  carry  on  manufacturing 
and  agricultural  pursuits  on  a  large  scale  ;  to  establish  a  com- 
mon warehouse,  in  which  each  member  is  entitled  and  bound 
to  expose,  on  his  own  account,  the  wares  of  his  manufacture, 
and  for  procuring  articles  for  family  use  and  distributing  them 
by  means  of  cooperative  stores  or  otherwise.  All  industrious 
persons  who  maintain  themselves  and  their  families  are  eligible 
as  members  of  these  associations.  No  one  is  allowed  to  hold 
more  than  two  hundred  dollars  in  stock.  None  are  admitted 
but  by  vote.  The  basis  of  credit  is  a  fund  derived  from  monthly 
contributions,  the  amount  of  which  is  the  measure  of  the  sum 
for  which  the  association  can  be  indebted.  It  must  always 
equal  thirty  per  cent,  of  the  association  debt.  But  the  great 
security  arises  from  the  personal  liability  of  all  members  for 
debts  due  from  the  association.  The  law  by  which  they  are 
authorized  consists  of  seventy  sections,  which  guard  the  rights 
both  of  the  public  and  the  shareholders  so  effectually  that  there 
has  never  been  a  case  of  failure.  The  losses  upon  the  millions 
used  have  only  averaged  one-fourteenth  of  one  per  cent.,  and 
the  profits  on  the  money  deposited  by  the  shareholders  have 
averaged  twelve  per  cent,  per  annum. 

A  German  friend  of  mine,  on  returning  to  his  native  city  of 
Cologne,  was  surprised  to  find  the  place  in  a  great  state  of  ex- 
citement. All  the  guilds  of  the  several  associations  of  working 
men  were  arranged  under  their  several  banners,  in  order  to 
escort  with  due  honor  Mr.  Schulze  Delitzsch  to  his  quarters.  He 


9 

naturally  inquired  who  this  Mr.  Schulze  Delitzsch  was,  whom 
the  people  thus  delighted  to  honor,  and  what  he  had  done  to 
deserve  it.  He  was  not  a  soldier  returning  from  successful 
war.  He  was  not  a  millionaire  who  could  bestow  hundreds  of 
thousands  to  give  a  small  number  of  mechanics  comfortable 
homes  at  a  comparatively  low  price.  He  was  a  gentleman  of 
moderate  means.  His  whole  merit  was  that  by  introducing 
these  banks  he  had  enabled  the  working  classes  to  take  care  of 
themselves  ;  and  in  doing  that  had  opened  the  way  to  an  inde- 
pendence which  thus  excited  their  gratitude. 

I  have  now  a  petition  before  the  Committee  on  Banks  and 
Banking,  which,  if  granted,  will  give  to  our  working  classes  the 
great  benefits  that  have  been  conferred  by  their  law  on  the 
working  men  of  Germany.  Should  it  be  reported,  I  am  sure, 
Mr.  Chairman,  that  you  will  give  it  your  most  careful  consid- 
eration, and  if  approved,  your  most  efficient  support. 

Now  for  the  union  and  application  of  these  principles.  I  go 
into  a  model  tenement  house,  built  by  philanthropists  who  only 
desire  to  receive  six  per  cent,  on  their  investment,  instead  of 
twenty  and  thirty  per  cent,  that  are  paid  by  the  poor  in  other 
cases.  The  poorer  class  of  the  best  condition  are  here  pro- 
vided with  a  small  parlor,  a  kitchen,  one  chamber,  and  a  recess, 
concealed  by  a  curtain,  for  another  bed.  For  this  accommoda- 
tion they  pay  three  dollars  and  fifty  cents  a  week,  or  one  hun- 
dred and  eighty-two  dollars  a  year.  I  am  satisfied,  from  replies 
I  have  received  to  an  advertisement  for  suitable  land,  that,  if 
this  petition  should  be  granted,  they  could  obtain  far  better  ac- 
commodations, with  a  few  thousand  feet  of  land  for  a  garden, 
for  one  thousand  dollars  ;  the  interest  of  which,  seventy  dollars, 
being  deducted  from  the  amount  now  paid,  would  leave  over  a 
hundred  dollars  to  be  applied  annually  to  the  payment  of  the 
principal. 

But  how  shall  this  credit  be  obtained  by  the  working  classes 
who  have  no  rich  friends  to  help  them  and  small  reserves  of 
their  own  ?  In  Germany  this  question  has  been  answered,  as  I 
have  stated,  by  the  cooperative  banks,  through  which,  by  means 
of  a  system  of  mutual  responsibility  for  loans,  millions  of  dol- 
lars have  been  placeOn  the  hands  of  working  men,  rendering 
them  prosperous  and  independent,  and  developing  the  manly 
character  that  is  now  astonishing  the  world  by  its  military  re- 
2* 


10 

suits.  Let  us  apply  this  principle  to  obtaining  credit  for  the 
erection  of  houses.  Take  the  first  case  to  which  I  have  alluded. 
If  a  man  who  is  now  paying  three  dollars  and  a  half  a  week  for 
his  lodgings  could  obtain  a  house  with  equal  or  superior  ac- 
commodations for  11,000,  the  interest  on  which,  at  7  per  cent, 
would  be  $70  dollars  a  year,  and  apply  the  difference  between 
that  and  the  rent  he  now  pays,  $112  a  year,  to  a  sinking  fund, 
it  is  evident  that  within  ten  years  he  would  have  paid  for  and 
owned  his  house,  his  rent  diminishing  all  the  time. 

A  working  man  goes  to  a  capitalist  and  makes  the  above  state- 
ment, and  adds,  If  I  could  obtain  this  money  I  should  be  able 
in  a  few  months  to  procure  a  home,  where  the  health  of  my 
children  will  be  improved,  where  they  will  not  be  subjected  to 
bad  influences,  and  where  I  and  my  family  will  have  an  object 
for  which  to  work  and  economize.  The  capitalist  would  reply, 
All  that  may  be  very  true,  but  what  security  do  you  give  me 
that  you  will  take  the  house  when  it  is  built  ?  I  do  not  wish 
to  invest  my  money  in  a  small  house,  which  I  may  have  the 
trouble  of  leasing  or  be  obliged  to  sell  at  a  loss.  You  may  reply, 
I  have  some  money  in  the  savings  bank ;  if  you  will  lend  me 
the  rest  I  will  pay,  say  two  hundred  dollars  towards  the  land 
and  foundation  of  the  house,  and  shall  pay  the  rest  in  instal- 
ments as  the  work  progresses.  The  capitalist  may  reply,  So 
far  your  offer  is  satisfactory  ;  but  what  security  have  I  that  you 
will  continue  to  pay  your  rent  ?  You  are  an  honest,  temper- 
ate man,  a  good  mechanic,  and  perform  your  agreement  if  pos- 
sible. But  you  may  be  sick  ;  you  may  meet  with  an  accident 
that  will  prevent  your  performing  your  contract.  Is  there  no 
person  who  will  be  willing  to  guarantee  the  payment  of  your 
rent,  at  least  until  so  much  has  been  paid  on  the  principal  as 
to  render  a  lien  on  the  house  sufficient  security  for  the  balance  ? 
You  may  reply,  Yes.  There  are  twenty — fifty — a  hundred 
mechanics  whose  characters  are  as  good,  and  whose  individual 
responsibility  is  as  great  as  my  own,  who  for  the  sake  of  obtain- 
ing a  house  on  these  terms  will  be  jointly  and  severally  respon- 
sible that  my  rent,  and  the  rent  of  all  the  other  associates,  shall 
be  regularly  paid  and  deposited  every  lunar  month  in  a  savings 
bank,  from  which  deposit  there  shall  be  paid  your  interest  semi- 
annually,  and  the  balance  carried  annually  to  our  credit ;  to  re- 
main, however,  as  security  in  the  bank  until  all  our  contract 


11 

with  you  is  fulfilled,  and  the  risk  of  thus  guaranteeing  the  pay- 
ment of  rent  would  be  small,  after  the  first  deposit,  and  dimin- 
ishing by  every  payment  that  is  made  ;  and  in  case  of  default 
the  association  would  have  the  right  to  take  possession  of  the 
property  and  sell  the  subscriber's  rights  to  some  one  who  would 
undertake  to  fulfil  his  agreement. 

What  steps  should  be  taken  by  persons  who  wish  to  avail 
themselves  of  such  an  association  ?  If  you  are  become  liable 
for  the  payment  of  the  rent  of  another,  you  of  course  desire  to 
know  the  character  and  responsibility  of  your  associate.  Let  a 
certain  number  of  persons  who  work  in  the  same  shop  or  the 
same  neighborhood  form  such  an  association,  and  admit  any 
persons  whom  they  are  satisfied  are  honest,  industrious  and 
temperate,  and  who  are  earning  enough  to  support  their  fami- 
lies, and  pay  regularly  their  present  rent.  I  have  spoken  of  a 
hundred  associates,  as  a  large  number  would  be  able  to  pur- 
chase the  land  and  erect  the  buildings  on  far  better  terms  than 
a  smaller.  But  so  large  a  number  is  not  essential ;  ten  or 
twenty  responsible  men  could  probably  get  the  credit  that  is 
essential  to  carrying  out  the  plan.  There  may  be  advantages 
in  smaller  numbers.  If  a  village  is  to  be  established,  it  may  be 
more  agreeable  that  persons  of  the  same  occupation,  nationality 
or  faith  should  dwell  together.  Let  there  be  several  of  these 
associations,  to  comprise  persons  who  are  naturally  drawn  to- 
wards one  another,  and  let  the  rivalry  be  who  shall  show  the 
neatest  houses,  the  best  organized  society  and  best  educated 
children.  It  is  generally  assumed  that  the  members  of  such 
an  association  should  be  located  on  the  same  piece  of  land ; 
but  this  is  not  essential.  All  that  is  necessary  is  that  the  house 
should  be  of  sufficient  value  to  render  the  payment  of  rent  cer- 
tain. 

For  many  reasons  it  is  desirable  that  those  who  thus  associate 
should  live  together  out  of  the  city,  obtaining  a  favorable  loca- 
tion, and  availing  themselves  of  the  advantages  of  buying  and 
building  by  wholesale,  and  have  an  opportunity  of  organizing 
their  society  to  their  own  satisfaction.  From  offers  made  to 
me  in  reply  to  an  advertisement,  I  am  satisfied  that  land  can  be 
procured  within  thirty  minutes'  ride  by  railroad  on  very  favor- 
able terms. 

The  association  being  formed  and  the  refusal  of  the  land  ob- 


12 

tained,  the  next  and  most  important  step  is  to  raise  the  neces- 
sary funds.  These  may  be  obtained  either  of  individuals  or  the 
savings  banks.  The  latter  hold  about  one  hundred  and  twenty- 
three  millions  of  dollars  ($123,000,000),  a  very  large  propor- 
tion of  which  belongs  to  the  working  classes,  and  should,  as  far 
as  is  consistent  with  security,  be  used  for  their  benefit.  These 
institutions  are  authorized  by  law  to  lend  money  on  mortgage 
of  real  estate,  or  on  the  note  of  an  individual  with  two  satisfac- 
tory sureties.  The  association  would  give  both  a  mortgage  on 
their  property  and  their  joint  and  several  obligations  to  pay  a 
sum  agreed  upon  every  month  until  the  debt  was  cancelled.  As 
His  Excellency  in  his  message  states,  great  moneyed  institutions 
object  to  lending  small  sums  of  money  on  account  of  the  trouble 
in  collecting  the  interest.  This  arrangement  obviates  the  objec- 
tion. 

The  great  difficulty  of  forming  such  an  association  and  car- 
rying it  out,  results  from  want  of  confidence.  Laboring  men 
have  earned  their  money  hard  and  are  unwilling  to  put  it  at 
risk.  There  is,  however,  one  class  of  institutions  that  is  enti- 
tled to  and  that  has  the  confidence  of  the  whole  community — the 
savings  banks.  Should  such  an  association  be  formed,  I  should 
hope  not  only  to  procure  the  money  from  them,  but  to  consti- 
tute them,  in  a  manner,  the  financial  agents  of  the  concern.  I 
should  propose  that  a  committee  of  the  association  should  be 
appointed  to  collect  the  rents,  $3.50  a  week,  and  deposit  in  a 
savings  bank  where  interest  is  allowed.  Supposing  there  are 
one  hundred  members ;  they  have  in  a  year  together  paid  in 
$18,200;  $5,600  will  have  paid  the  interest  on  the  $80,000 
borrowed,  and  $12,600,  or  $126  for  each  individual,  paid  on  the 
principal  of  his  debt,  which  is  thus  reduced  from  $800  to  $674 ; 
this  may  be  endorsed  on  his  obligation,  and  at  once  reduce  his 
rent  $9.03,  or  may  be  left  on  interest  in  the  savings  bank  until 
the  whole  debt  is  paid.  Within  three  years  one-half  of  the  debt 
would  be  paid,  and  the  property,  without  any  other  security, 
would  be  a  guarantee  for  the  payment  of  the  rent. 

Some  will  doubt  whether  the  funds  necessary  for  such  a  plan 
can  be  obtained.  I  am  sanguine  that  they  can.  In  the  lan- 
guage of  Burke,"  There  is  nothing  in  the  world  really  beneficial 
that  does  not  lie  within  the  reach  of  an  informed  understanding 
and  a  well-directed  pursuit.  There  is  nothing  that  God  has 


13 

judged  good  for  us,  that  he  has  not  given  us  the  means  to  ac- 
complish both  in  the  natural  and  moral  world.  If  we  cry  like 
children  for  the  moon,  like  children  we  must  cry  on."  Should 
such  an  association  be  formed,  and  a  sufficient  sum  paid  in  to 
render  the  mortgage  with  the  personal  guarantee  secure,  phil- 
anthropists who  cannot  afford  to  dispense  with  the  income  of 
their  property  may  confer  a  vast  benefit  on  their  fellow-men, 
without  risk  and  without  trouble.  The  weekly  payments  of 
the  association  into  a  savings  bank  will  secure  the  interest  and 
provide  for  the  repayment  of  the  capital.  The  painful  neces- 
sity of  collecting  rents  from  the  poor,  which  prevents  capitalists 
from  investing  in  this  species  of  property,  will  be  avoided,  and 
the  interest  of  the  tenant  in  a  house  he  owns  will  lead  him  to 
keep  it  in  repair  and  provide  for  the  taxes  and  insurance. 

Mr.  Chairman,  I  thank  you  and  the  other  gentlemen  of  the 
committee  for  this  opportunity  of  explaining  my  object  in  pre- 
senting this  petition.  You  will  be  addressed  by  eloquent  ora- 
tors, paid  to  persuade  you  to  make  the  rich  richer.  But  I  feel 
confident  that  as  statesmen  you  will  agree  with  me  that  the 
highest  benefit  you  can  confer  on  the  republic  is  to  elevate  the 
character  and  condition  of  the  working  classes,  by  aiding  them 
in  obtaining  INDEPENDENT  HOMES. 


14 


HOMES  FOR  MEN  OF  MODERATE  MEANS. 


ADDRESS 

BEFORE  THE  QUINCY  HOMESTEAD  ASSOCIATION,  OCTOBER  4,  1871. 


MY  FRIENDS  : — It  gives  me  sincere  pleasure  to  meet  the  fam- 
ilies of  your  Association  this  evening.  While  we  hold  that  the 
possession  of  a  house  is  a  condition  almost  indispensable  to  the 
highest  usefulness  and  happiness  of  man,  we  must  also  acknowl- 
edge that  the  house  can  never  be  made  a  home  without  the 
cooperation  of  the  woman  who  shares  it.  Here  she  finds  the 
sweetest  and  fullest  expression  for  her  individuality ;  hence  she 
exerts  her  widest  influence.  While  we  take  a  reasonable  inter- 
est in  the  various  schemes  of  cooperation  put  forward  by  zeal- 
ous advocates  to  regenerate  the  world,  let  us  never  forget  that 
the  purest  type  of  cooperation  is  found  in  the  household.  In 
these  days,  when  competition  is  keen  and  demoralizing  theo- 
ries of  life  are  publicly  advocated,  I  think  we  can  do  our  best 
work  in  upholding  and  strengthening  the  independent  family 
as  the  only  guarantee  of  a  free  state.  If,  then,  this  Association 
shall  show  that,  by  properly  combining  the  savings  of  working 
men,  comfortable  homes  are  secured,  it  will  be  doing  a  work  of 
great  usefulness  to  the  community  in  which  we  live. 

At  the  commencement  of  this  undertaking  I  told  you  that 
the  first  requisite  of  success  was  patience.  And  I  have  now  to 
say  that  we  have  progressed  as  far  and  as  fast  as  I  anticipated. 
Your  Association  is  composed  of  about  fifty  members,  who  have 
been  admitted  after  a  careful  examination  of  their  characters, 
wishes  and  prospects.  I  am  told  that  there  are  several  hun- 


15 

dred  more  who  are  ready  to  join  whenever  you  are  ready  to 
admit  them.  Many  of  the  regular  members  have  already  de- 
posited two  hundred  dollars  each  in  the  savings  banks,  and 
placed  the  books  in  my  hands,  to  be  used  in  payment  for  the 
land,  whenever  it  is  selected.  Should  the  Association  increase, 
as  I  am  led  to  believe  it  will,  to  one  hundred  members,  I  shall 
have  in  my  hands  twenty  thousand  dollars  in  cash,  which  will 
give  me  great  advantages  in  negotiating  for  land.  It  is  not 
difficult  to  find  a  location  in  the  country  easily  accessible  by 
railroad  to  the  city.  In  response  to  an  advertisement,  I  had 
offers  of  more  than  fifty  different  pieces  of  land  at  various  dis- 
tances and  at  various  prices.  In  some  cases  the  owners  of  real 
estate  have  offered  it  without  cost,  looking  for  remuneration  to 
the  increased  value  of  other  lands  by  the  location  of  a  thriving 
village  in  their  vicinity.  The  further  we  go  from  the  city,  the 
cheaper  the  land  and  the  larger  the  lot  for  a  garden  obtained 
for  the  same  money.  Modern  improvements  have  changed  the 
relative  position  of  places.  A  man  who  lives  on  a  steam  rail- 
road, fifteen  miles  from  the  city,  is,  for  all  practical  purposes  of 
time  and  convenience,  as  near  as  one  living  three  miles  from 
his  work,  but  who  is  obliged  to  depend  on  his  own  legs  or  a 
horse-car  for  his  means  of  locomotion.  From  interviews  I  have 
had  with  the  directors  of  several  of  the  railroads,  I  feel  confi- 
dent that  when  we  have  decided  on  a  location,  they  will  either 
give  a  free  ticket  for  several  years  to  the  head  of  each  family, 
or  run  a  cheap  train,  morning  and  evening,  for  the  accommoda- 
tion of  the  village. 

I  believe  that  the  managers  of  our  railroads  are  coming  to 
realize  the  importance  of  building  up  villages  by  liberal  reduc- 
tions of  fares.  The  enlightened  policy  of  the  Old  Colony  Rail- 
road is  even  now  creating  one  of  the  most  beautiful  and  thriving 
settlements  in  the  vicinity  of  Boston.  The  hills  at  present  called 
Wollaston  Heights,  in  the  town  of  Quincy,  which  President 
John  Adams  used  to  say  commanded  finer  views  than  any  he  / 
had  seen  in  Europe,  are  being  covered  with  houses  with  a  ra- 
pidity almost  unprecedented.  While  a  part  of  this  success  is 
doubtless  owing  to  the  able  management  of  those  controlling 
this  settlement,  and  their  guarantee  that  the  community  shall 
never  know  the  nuisance  of  a  grog-shop,  a  large  portion  must 
be  attributed  to  the  directors  of  the  railroad,  who  promised,  on 


16 


an  average,  a  free  ticket  for  three  years  to  each  householder, 
provided  fifty  houses  should  be  built.  In  three  years  the  num- 
ber of  passengers  between  Wollaston  Heights  and  Boston  in- 
creased over  four  hundred  per  cent.,  and  the  income  of  the 
road  from  the  families  and  friends  of  the  householders  over 
three  hundred.  The  following  are  official  returns  : — 


Passengers. 

Income. 

For  the  year  ending  June  30,  1869, 

3,376 

8540  19 

"             "           "         30,  1870, 

8,617 

1,160  70 

"           "         30,1871, 

14,654 

1,892  80 

For  three  months  ending  August  31,  1871, 

14,300 

~~ 

Thus  in  four  years  from  the  inauguration  of  this  system,  the 
paying  passengers  at  that  station  will  have  increased  from  a 
little  more  than  three  thousand  to  fifty. 

When  the  arrangements  are  made  with  the  railroads,  and  the 
style  and  cost  of  the  buildings  decided,  the  financial  question 
remains.  That  small  houses  in  the  country  sell  for  much  more 
than  they  cost  is  evident  from  the  great  numbers  that  are  going 
up  in  every  direction  around  the  city.  If  I  am  rightly  informed, 
houses  that  cost  with  the  land  from  fifteen  to  eighteen  hundred 
dollars,  sell  for  from  twenty-five  hundred  to  three  thousand  dol- 
lars, and  I  have  heard  of  cases  where  savings  banks  have 
loaned  more  than  the  whole  cost  of  such  buildings  and  consid- 
ered the  security  ample.  The  managers  of  savings  banks  are 
trustees,  and  they  would  be  false  to  their  trusts  if  they  loaned 
their  money  without  adequate  security.  As  far  as  it  concerns 
us,  their  investments  are  limited  by  law  to  loans  on  real  estate, 
and  on  the  obligation  of  an  individual,  with  two  satisfactory 
guarantors.  Most  capitalists  will  lend  two-thirds  of  the  value 
of  an  estate  on  mortgage,  if  the  signer  of  the  note  is  considered 
responsible. 

Now,  what  is  the  security  your  Association  proposes  ?  Let 
us  take  as  an  illustration  the  smallest  house  that  would  proba- 
bly be  constructed.  The  principle  of  course  applies  to  houses 
of  any  cost. 

In  the  model  tenement  houses  apartments,  consisting  of  a 


17 

parlor,  a  kitchen,  a  chamber  and  a  recess  for  a  bed,  with  cer- 
tain privileges  in  the  cellar,  rents  for  three  dollars  and  fifty 
cents  a  week,  or  one  hundred  and  eighty-two  dollars  a  year. 
A  house  with  far  greater  accommodation  can  be  built  by  an 
association  for  one  thousand  dollars,  the  interest  on  which,  at 
eight  per  cent  ,  is  eighty  dollars.  A  single  house  of  this  class 
would  cost  twelve  hundred  and  fifty  dollars,  and  would  sell  for 
more  than  its  cost.  If  a  single  house  can  be  built  for  $1,250, 
builders  will  contract  to  build  fifty  at  a  discount  of  from  20  to 
25  per  cent. 

Fifty  houses  at  -11,250  would  be  162,500  ;  at  twenty  per  cent, 
discount  they  would  be  built  for  $50,000,  or  $1,000  apiece. 
The  hundred  dollars  paid  in  would  reduce  the  amount  of  the 
loan  required  to  $900  on  each  house,  or  $45,000  in  the  aggre- 
gate, or  about  two-thirds  of  the  value  of  the  houses,  supposing 
them  to  be  worth  only  the  $62,500  which  would  have  been 
their  cost  if  built  singly.  The  subjoined  calculation  shows 
what  would  be  the  result  if  the  loan  were  effected  at  8  per 
cent.,  the  interest  and  part  of  the  principal  being  paid  annu- 
ally ;  interest  at  6  per  cent,  on  deposits  being  credited,  as  this 
is  allowed  by  several  of  the  banks  : — 

Build  fifty  houses  at  $1,000  each,  ....  $50,000  00 
Pay  $100  down  on  each  house,  ....  5,000  00 


$45,000  00 
I  pay  8  per  cent,  interest,  or  $3,600  a  year : — 


FIRST    TEAR. 


Rent  of  each  house  $3.50  a  week,  or  $182  a  year,  say 
fifty  houses, $9,100  00 

Interest  on  deposits  6  per  cent.,  aver- 
age 3  per  cent.,         ....  273  00 


Income,  rents,  etc.,      ....         $9,373  00 
Less  8  per  cent,  on  $45,000,          .        .          3,600  00 

5,773  00 


Carried  forward, $39,227  00 

3 


18 
Brought  forward, $39,227  00 

SECOND    TEAK. 

Rents  and  income  as  above,         .         .        $9,373  00 
Less  one  year  interest  on  balance  of 
loan,  say  $39,227,  at  8  per  cent.,      .          3,138  00 

6,235  00 


$32,992  00 

THIRD    TEAK. 

Rents  and  income  as  above,         .        .         $9,373  00 
Less   one  year  interest  on  balance  of 

loan,  say  8  per  cent.,         .        .         .  2,639  00 

6,734  00 


$26,258  00 

FOURTH   TEAR. 

Rents  and  income  as  above,         .         .         $9,373  00 
Less  one  year  interest  on  balance  of 

loan,  say  8  per  cent.,         .         .         .          2,100  00 

7,273  00 


$18,985  00 

FIFTH    TEAR. 

Rents  and  income  as  above,         .         .         $9,373  00 
Less  one  year  interest  on  balance  of 

loan,  8  per  cent.,      ....          1,518  00 

7,855  00 


$11,130  00 

SIXTH   TEAR. 

Rents  and  income  as  above,         .         .         $9,373  00 
Less  one  year  interest  on  balance  of 
loan,  8  per  cent.,      ....  890  00 

8,483  00 


SEVENTH    TBAE. 

Rents  and  income  as  above,         .        .        $9,373  00 
Less  one  year  interest  on  balance  of 

loan,  8  per  cent.,       ....  211  00 

$9,162  00 

Less  balance  of  loan,     .         .         .  2,647  00 


Surplus  on  hand,          .,.,...         $6,525  00 
Debt  extinguished. 


19 

You  perceive  by  these  figures  that  in  little  more  than  six 
years  the  debt  would  be  paid  in  full,  and  that  at  the  expiration 
of  two  years  there  will  have  been  paid  interest  and  over  $12,000 
on  the  principal,  and  the  debt  reduced  from  $45,000  to  $33,000, 
which  is  about  one-half  of  the  cost  of  the  houses.  Savings  banks 
are  authorized  to  lend  on  the  note  of  an  individual  with  two 
sureties.  You  propose  to  give  a  note,  a  mortgage,  and  fifty 
sureties  ;  and  those  not  men  who  to-day  are  supposed  to  be 
worth  a  million,  but  who,  by  a  turn  in  the  stock  market,  may 
to-morrow  be  bankrupts.  The  income  of  the  men  you  propose 
is  during  their  lives  as  certain  as  the  continued  necessities  of 
mankind,  and  in  case  of  death,  the  "  Unity  Mutual  Life  Insur- 
ance Company,"  of  which  most  of  you  are  members,  will  fur- 
nish the  means  for  paying  up  his  rent  and  securing  the  prop- 
erty to  his  family. 

This  Association  propose  to  build  fifty  houses  of  a  better 
class,  which,  if  erected  singly,  would  cost  $2,000  each,  or  $100,- 
000 ;  assuming  that  there  would  be  a  discount  of  twenty-five 
per  cent.,  as  I  am  assured  by  builders  would  be  the  case,  if  con- 
tracted for  together,  the  cost  would  be  $75,000  ;  of  this  each 
member  pays  down  $200,  or  $10,000  in  the  aggregate,  reducing 
the  amount  required  on  mortgages  to  $65,000,  or  about  two- 
thirds  of  the  value  of  the  houses  if  erected  singly  ;  assuming 
that  you  obtain  the  money  at  seven  per  cent,  and  receive  in- 
terest on  your  deposits  as  before.  According  to  the  following 
statement,  the  debt  would  be  reduced  in  two  years  to  one-half 
of  the  value  of  the  houses,  estimating  them  at  the  cost  if 
erected  singly,  and  the  whole  debt  extinguished  in  a  little 
more  than  six  years : — 

Build  fifty  houses  at  $1,500  each, $75,000  00 

Pay  $200  down  on  each  house,^ 10,000  00 


$65,000  00 
Interest  at  seven'per  cent,  is  $4,550. 

FIKST    YBAB. 

Rent  of  each  house  at  $5  per  week  or  $260 

a  year,  is, $18,000  00 


Carried  forward,        ....    $13,000  00   $65,000  00 


20 

Brought  forward,       ....    $13,000  00    $65,000  00 
Interest  on  deposits,  say  3  per  cent.,          .  390  00 

Income, $13,390  00 

Less  interest  on  $65,000  at  7  per  cent.,     .       4,550  00 

8,840  00 


$56,160  00 

SECOND    TEAR. 

Rents  and  income  as  before,     .          .         .    $13,390  00 
Less  interest  on  balance  of  loan  at  7  per 

cent., 3,931  00 

9,459  00 


$46,701  00 

THIRD    TEAR. 

Rents  and  income  as  above,       .         .         .    $13,390  00 
Less  7  per  cent,  interest  on  balance  of  loan,        3,269  00 

10,121  00 


$36,580  00 

FOURTH   TEAR. 

Rents  and  income  as  above,      .        .        .    $13,390  00 
Less  7  per  cent,  interest  on  balance  of  loan,       2,560  00 

10,830  00 


$25,750  00 

FIFTH   TEAR. 

Rents  and  income  as  above,      .        .        .    $13,390  00 
Less  7  per  cent,  interest  on  balance  of  loan,       1,802  00 

11,588  00 


$14,162  00 

SIXTH  TEAR. 

Rents  and  income  as  above,     .          .        .    $13,390  00 
Less  7  per  cent,  interest  on  balance  of  loan,  991  00 

12,399  00 


$1,763  00 

SEVENTH   TEAR. 

Rents  and  income  as  above,     .        .        .    $13,390  00 
Less  7  per  cent,  interest  on  balance  of  loan,          123  00 


Surplus,      .  .    $13,267  00 

And  debt  extinguished. 


21 

When  a  location  is  selected  and  arrangements  made  with  the 
railroads  for  free  tickets  or  reduced  fares,  and  not  until  then, 
the  members  will  be  called  upon  for  an  assessment  to  pay  for 
their  house-lots,  which  will  not  exceed  the  amounts  proposed. 
Each  member  will  receive  a  deed  and  give  a  bill  of  sale  mort- 
gage on  his  own  house  for  the  amount  he  requires  —  in  one  of 
the  before-mentioned  cases  for  nine  and  in  the  other  for  thir- 
teen hundred  dollars  —  the  money  to  be  received  as  the  work 
progresses,  BO  as  to  keep  the  lender  always  secured.  In  addi- 
tion to  the  individual  responsibility  of  the  signer  of  the  note, 
the  members  of  the  Association  agree  to  be  jointly  and  severally 
responsible  that  the  debt  and  interest,  in  the  shape  of  a  rent, 
shall  be  paid  regularly  on  each  and  every  note  at  the  times  and 
in  the  amounts  agreed.  In  case  of  neglect  of  an  individual, 
the  bank  would,  at  the  request  of  the  Association,  sell  under 
the  mortgage,  the  purchaser  paying  the  surplus,  if  any,  to  the 
original  owners.  Such  an  arrangement  would  require  the  bank 
to  keep  but  one  account  until  the  end  of  each  year,  when  the 
interest  would  be  deducted  and  his  proportion  of  the  surplus  of 
the  deposits  indorsed  on  the  note  of  each  individual. 

As  by  this  plan  no  member  parts  with  his  money  until  he 
has  a  deed  of  his  house-lot,  and  as  the  payments  of  rent  are 
made  directly  to  the  lender,  there  would  seem  to  be  hardly  a 
possibility  of  loss. 

In  the  foregoing  calculation  I  have  made  no  addition  for  in- 
surance, taxes  and  the  railroad  ticket  for  the  owner  of  the 
house.  My  object  is  to  render  all  that  the  tenants  do  as  sim- 
ple as  possible,  so  that  they  may  have  no  responsibility  but  that 
of  paying  their  rent  as  it  accrues.  To  provide  for  this  I  should 
propose  that  in  addition  to  the  payment  of  the  interest  there 
should  be  deducted  from  the  amount  paid  in,  a  sum  equal  to 
the  insurance  and  taxes,  and  after  one-half  of  the  value  of  the 
house  is  paid,  a  further  sum  sufficient  to  pay  for  the  railroad 
ticket.  This  would  postpone  the  ultimate  payment  for  the 
house,  but  would  simplify,  in  a  great  degree,  the  duty  of  the 
tenant. 

A  friend  of  mine,  who  has  studied  what  is  called  the  labor 
question  with  some  attention,  comes  to  the  conclusion  that  one 
of  the  most  practicable  ways  of  protecting  a  man's  rights  as  a 
laborer  is  to  protect  his  rights  as  a  capitalist.  The  working 


22 

man  who  denies  himself  and  lays  by  part  of  his  wages  should 
command  the  best  business  intelligence  to  secure  him  a  pro- 
ductive investment.  While  walking  through  streets  of  mag- 
nificent stores  and  luxurious  dwellings,  we  ask  the  question, 
Who  furnishes  the  money  for  this  lavish  expenditure  ?  A  great 
part  of  it  is  supplied  by  the  savings  banks.  And  these  banks 
represent  the  surplus  not  only  of  the  mechanic  and  artisan,  but 
also  of  the  hod-carrier  and  the  washerwoman.  Now,  it  is  recog- 
nized by  all  other  banks  that  he  who  keeps  a  large  deposit  has 
a  good  claim  to  a  discount.  Should  his  bank  refuse  a  capitalist 
such  an  accommodation  he  would  at  once  transfer  his  account 
to  another.  The  laboring  classes  in  Massachusetts  have  on 
deposit  over  one  hundred  millions  of  dollars  !  There  is  a  com- 
petition among  savings  banks  to  attract  depositors.  It  should 
be  determined  among  their  patrons  to  withdraw  their  deposits 
from  such  banks  as  refuse  to  lend  to  persons  of  moderate 
means  upon  good  security,  and  to  place  them  in  those  that  will 
offer  the  working  man  this  important  aid. 

The  savings  banks  at  the  West  are  managed  by  persons  who 
deem  it  to  be  their  duty  to  assist  their  depositors  in  obtaining 
independent  homes.  I  have  circulars  issued  by  such  institu- 
tions in  Toledo  and  Chicago.  These  offer  premiums  for  the 
best  plans  of  houses  adapted  to  persons  of  moderate  means. 
They  announce,  in  capital  letters,  "  Money  loaned  to  those  who 
deposit  with  the  institution  and  who  wish  to  build  houses." 
They  publish  plans,  elevations,  specifications,  and  "  a  bill  of 
items  furnished  by  a  practical  builder,  showing  the  actual  cost 
of  a  house."  These  houses  can  be  erected  there  for  from  $375 
to  11,500  apiece.  A  three  hundred  and  seventy-five  dollar 
house  is  not  a  palace,  but  it  gives  as  much  accommodation  as 
is  obtained  in  the  city  for  three  dollars  and  a  half  a  week, 
and  is  so  constructed  that  it  can  be  made  a  part  of  a  larger 
building  whenever  the  tenant  is  able  to  construct  one.  I  have 
had  an  offer  to  build  a  house  with  four  rooms  for  $400,  provided 
a  large  number  were  contracted  for  together.  Now,  on  the  plan 
adopted  by  your  Association,  the  tenant  would  pay  down  1100 
for  a  lot.  This,  if  containing  2,500  feet,  land  at  $400  an  acre, 
would  cost  but  about  $25,  leaving  $75  for  incidentals. 


23 

He  borrows  on  mortgage,  with  the  guarantee  of  his  asso- 
ciates,            $400  00 

He  pays  annually,  by  weekly  instalments  to  the  savings 
banks,  $3.50  X  52, $182  00 

Interest  at  8  per  cent,  on  $400, .         .       $32  00 

Insurance  and  taxes, .         .         .         .         20  00 

52  00 

To  be  carried  to  the  sinking  fund  annually,       .     $130  00 

In  three  years, $390  00 

Add  interest  on  deposits, 17  62 

—  $407  62 

At  the  end  of  three  years  he  has  paid  for  his  house  and  can 
afford  forever  after  to  pay  his  fare  on  the  railroad.  The  above 
is  in  the  expectation  of  being  able  to  obtain  a  free  pass  for  the 
owner  of  the  house  for  three  years.  My  hope  of  so  doing  is 
based  on  the  great  benefit  that  would  accrue  to  the  public,  and, 
as  in  case  of  the  Old  Colony,  a  prospect  that  it  would  greatly 
increase  the  income  of  the  road.  At  the  last  session  of  the 
legislature  I  presented  a  bill,  asking  for  working-men's  trains, 
at  rates  similar  to  those  granted  in  Great  Britain.  The  coun- 
sel for  the  railroads  did  not  deny  the  power  of  the  legislature 
to  grant  the  petition,  but  stated  that  the  managers  of  the  rail- 
roads would  be  very  liberal  to  such  associations  if  they  were 
authorized  by  law  to  make  such  a  discrimination  between  their 
passengers,  and  an  Act  was  accordingly  passed.  In  the  interest 
of  the  railroads  I  advocate  a  free  pass  for  the  head  of  the  house 
for  three  years,  on  certain  specified  trains,  to  associations  that 
would  put  up  fifty  houses  on  the  line  of  the  road,  as  there 
would  then  be  no  necessity  for  making  any  alteration  in  regu- 
lar fares.  From  letters  I  have  received,  and  papers  that  have 
been  sent  me  from  St.  Louis,  Toledo,  Pittsburg,  Chicago  and 
San  Francisco,  I  have  no  doubt  that  similar  associations  to  yours 
will  be  formed  at  many  places  in  the  West,  and  hundreds  of 
houses  be  thus  erected  by  the  savings  of  working  men  in  other 
parts  of  our  common  country. 

The  homestead  of  the  laborer  is  the  best  form  in  which  capi- 
tal can  be  invested.  It  pays  a  large  percentage,  and  is  of  the 
highest  advantage  to  the  State  and  the  individual  by  elevating 


UCSB  LIBRARY 


24 

the  family  relation,  upon  which  the  prosperity  of  both  must 
depend.  I  therefore  maintain  that  the  working  man  who  lays 
by  something  every  year  should  be  able  to  buy  credit  with  his 
savings.  And  I  am  confident  that  an  association  such  as  you 
have  formed  —  a  company  of  working  men  of  good  honorable 
character  and  responsible  for  each  other  —  can  offer  the  amplest 
security. 


APPLICATION  FOR  MEMBERSHIP 


THE    QUINCY    HOMESTEAD    ASSOCIATION. 


1.  What  is  your  full  name? 

2.  Residence. 

3.  Occupation. 

4.  Place  of  business. 

5.  Date  and  place  of  birth. 

6.  Are  you  married  or  single  ? 

7.  If  married,  how  large  a  family  have  you  ? 

8.  Whom  do  you  offer  as  references  ?     (Name,  .)     (Address,         .) 

9.  Do  you  understand  Mr.  Quincy's  plan  ? 

10.  Are  you  prepared  to  pay  §200  as  the  first  instalment,  when  called  for 
by  Mr.  Quincy  ? 

11.  Are  you  temperate  in  your  habits? 

12.  Do  you  enter  into  this  Association  with  a  speculative  view,  or  for  the 
purpose  of  procuring  a  home  for  yourself  and  family  ? 

13.  What  railroad  do  you  prefer? 
Signature  of  applicant. 
Proposed  by 

The  investigating  committee  report 


A     000609912 


